State and Regional Outlook
In recent years, growth in the restaurant industry has been strongest in regions of the country with the fastest-growing economies - namely the South and the West. Fueled by steady growth in employment, population and disposable personal income, most states in these regions consistently registered sales growth above the national average.

In 2002, the outlook is for a continuation of the same regional trends. The top five regions in terms of eating-place sales growth are located in either the South or the West. On a state level, the top 12 states in terms of eating-place sales growth are also located in either the South or the West. Similarly, these states and regions are also projected to register above-average growth in terms of employment, population and disposable personal income in 2002.

East North Central Region
2001 In Review
The East North Central region was among the hardest hit by the 2001 recession. The region lost jobs at a 0.9 percent rate during 2001, ranking last out of the nine Census regions in terms of employment performance.

Wisconsin was the only state in the region to register an employment performance above the national average in 2001, with employment declining at a 0.5 percent rate. The remaining four states - Illinois (-0.7 percent), Ohio (-0.8 percent), Michigan (-1.2 percent) and Indiana (-1.6 percent) ? all had employment performances below the national average.

The East North Central region also ranked last in terms of income growth in 2001. Real disposable personal income increased at a 3.3 percent rate in the region - nearly a full percentage-point below the 4.2 percent gain on the national level.

All five states in the region registered income growth below the national average in 2001.

Population growth in the East North Central region also lagged behind the national average in 2001.

All five East North Central states registered population growth below the national average in 2001, with Indiana leading the way at 0.7 percent. Wisconsin added residents at a 0.6 percent rate, while Michigan and Illinois registered population gains of 0.5 percent in 2001.

Outlook for 2002
Although the East North Central region will continue to grow at a rate below the overall economy in 2002, the region is expected to make a solid improvement. Employment is projected to increase at a 0.1 percent rate in 2002 - a full percentage-point better than its 2001 performance. The region?s job growth is expected to rank eighth out of the nine Census regions in 2002.

Within the region, Indiana is expected to set the pace with a 0.3 percent employment gain, followed by 0.2 percent gains in Michigan and Wisconsin. Illinois is projected to add jobs at a 0.1 percent rate during 2002, while Ohio payrolls are expected to decline by 0.1 percent.

Like the rest of the nation, income growth is expected to slow in the East North Central region in 2002. Real disposable personal income is projected to increase at a 2.0 percent rate in the region - slightly below the 2.1 percent gain expected on the national level.

Indiana and Michigan are expected to lead the region with income growth of 2.2 percent in 2002, followed by 2.1 percent and 2.0 percent gains in Wisconsin and Ohio, respectively. Illinois is projected to post real disposable personal income growth of 1.8 percent in 2002.

Population growth in the East North Central region is expected to hold steady at 0.5 percent in 2002, which would tie for sixth out of the nine Census regions.

The East North Central region is projected to register eating-place sales of $49.7 billion in 2002 - the third largest eating-place sector in the nation. The region's eating-place sales are expected to increase 3.7 percent from their 2001 level, a growth rate which would tie for seventh out of the nine Census regions.

Illinois - with the largest eating-place sector in the region ($13.9 billion) - is projected to register sales growth of 3.6 percent. Michigan and Wisconsin are also expected to post sales growth of 3.6 percent in 2002, followed by a 3.5 percent gain in Ohio.

Economic Outlook for Michigan
Total non-agricultural employment in Michigan is expected to grow 0.2 percent during 2002, compared to the East North Central region's projected 0.1 percent gain and the 0.4 percent increase expected on the national level.

Real disposable personal income is forecast to advance at a 2.2 percent rate in Michigan in 2002, compared to 2.0 percent in the East North Central region and 2.1 percent in the nation as a whole.

Population is expected to grow 0.5 percent in Michigan in 2002, compared to a 0.5 percent gain in the region and a 0.9 percent population increase in the nation.

Michigan's projected eating-place sales volume of $10.8 billion will represent 22 percent of the East North Central region's total eating-place sales in 2002.

Source: National Restaurant Association